In a Chapter 13 bankruptcy case, upon filing, there is a creation of the Automatic Stay which protects the debtor against certain actions by creditors.  If the debtor is filing a bankruptcy case where a prior case was dismissed within the last year, then the Automatic Stay unless extended, will expire after 30 days.  This is a critical point because if a debtor files a Chapter 13 bankruptcy after a case has been dismissed within the last year, and the attorney does not bring a Motion to Extend the Automatic Stay, then the Stay will in fact be eliminated after 30 days from filing. What this means to a debtor is that a secured creditor, in many cases a vehicle or a mortgage company, can + Click Here For Read More

If you are filing a Chapter 13 bankruptcy case in Chicago and in the prior year you have had two or more cases dismissed, then you are going to want to impose the Automatic Stay in your current filing.  By the fact that you have had two or more bankruptcy cases dismissed within a calendar year, you are basically telling the world that you do not have the ability to reorganize under Chapter 13 successfully.  For this reason, when the law was changed, the Congress stated that upon a third filing where to prior cases were dismissed within the prior year, there is no Stay in effect at the time of filing.  This means that a sheriff’s sale can continue, a repossession can continue, any type of + Click Here For Read More

The filing of a Chapter 13 bankruptcy case is a process that takes discipline, attention to detail and a strong effort to succeed.  Chapter 13 involves repaying either all or a portion of your debt over a three to five-year period.  We are talking about a long repayment plan; 36 to 60 months of consistent payments not only to the trustee which takes care of your arrearages, your secured debt enter other miscellaneous debt, but you also need to make regular payments to your utilities, your mortgage company going forward, and your food and your clothing and all the other things that can happen in life that require money. You have to make sure that you budget properly once your Chapter 13 + Click Here For Read More

Can I keep my car in Chapter 13 Bankruptcy? Yes, you can keep your car through Chapter 13.  If your car is paid in full, it will just increase the amount that you have to pay back to your creditors based on the equity in your car.  If you have a car that’s worth $10,000, you’re going to have to pay back at least $10,000 worth of your debt which will increase your plan payment but you will be able to keep your car.  Conversely, if you are behind on your car and it’s either in danger of being repossessed or already being repossessed, you can file a Chapter 13 bankruptcy and pay for your car through the bankruptcy. There are major benefits to paying for a car through a Chapter 13 + Click Here For Read More

What is a Chapter 13 bankruptcy? A Chapter 13 bankruptcy is a reorganization of your debt or a repayment plan through the federal government of anywhere from 3 to 5 years.  Chapter 13 bankruptcy is a very complicated process; much more complicated than Chapter 7 so an attorney is definitely something you should acquire before filing Chapter 13. Chapter 13’s can be looked at as credit consolidation through the federal government where you put all your debt into one pot; you make one monthly payment to a trustee and the trustee repays your creditors based on the priority set up in the Bankruptcy Code. Good reasons to file Chapter 13 are if you have fallen behind on your home and need to + Click Here For Read More

The honest answer is it depends.  You will certainly have the ability to keep your home provided that you make timely payments.  Allow me to explain.  One of the main benefits of filing Chapter 13 or the main reason why people file Chapter 13 is in order to save their real estate and other property.  Property can be saved through Chapter 13 by putting everything you are behind on the mortgage, something called mortgage arrears, into your bankruptcy plan and paying that back over a three to five year period.  You can also put property taxes and the like into your bankruptcy plan in order to repay those debts through your bankruptcy.  The total that you are behind on your mortgage needs to be + Click Here For Read More

A creditors’ meeting is required under section 341 of the Bankruptcy Code.  In simple terms, it is a meeting of the minds between the parties present at the meeting.  The parties that will be present at the meeting will be you, the debtor; the debtor’s attorney, and a representative from the trustee’s office.  If you are in Chicago, Cook County, the trustee will be either Marilyn Marshall or Tom Vaughn.  If you are in Lake County or DuPage County or Will County, then  Glenn Stearns will be your trustee. The creditors’ meeting is nothing to be scared about.  As long as you are upfront and honest with your attorney when you originally met with him, the creditors meeting should be no + Click Here For Read More

The very first thing you need to do before filing for Chapter13 is to meet with an experienced attorney in your area to talk about your case. Most attorneys will have a bankruptcy questionnaire which you will fill out in advance or at your meeting. The questionnaire is a detailed listing of all of your assets, all of your liabilities and your statement of financial affairs. By filling out this questionnaire, the attorney will start to understand what your situation is. You may be trying to save a home that’s in foreclosure. You might be trying to repay non-dischargeable debt over time. You might have disposable income and you just want to protect all of your property and repay either all or + Click Here For Read More

A Chapter13 plan is a very complicated mathematical computation which is why you should always have an attorney when filing Chapter 13.  A Chapter13 plan is determined by three factors, your income, your expenses and your assets.  The court only will approve a Chapter13 bankruptcy if you can afford it which is why it’s such a powerful tool.  For instance, if you bring in $1000 a month in income and have $800 a month in expenses, the court won’t approve a Chapter13 repayment plan of over $200 a month.  This is good for some people and bad for others because your Chapter13 plan has to be something called feasible.  You have to show that you’re able to make the payments.  For instance, if you + Click Here For Read More